BiggerPockets

I am new to all of this, and have little to no guidance on where to start. I went to a Rich Dad seminar and found definite interest but left with the now what factor.

Are there mentors out there or any advice.
I want to start with wholesaling......

Ashley -
Spend some time in the Wholesaling section of our article directory and in our wholesaling forums and you'll get most of your questions answered just by reading.

When you've got some questions after that, let us know and we'll help you as we can!

Basically the equation looks like this

1. Find some buyers
2. Find out what your buyers want to buy
3. Find homes that meet your buyers wants
4. Put home under contract with an escape clause..I prefer inspection clause...Add your name "and/or assignees" to the contract to make it assignable
5. Get your buyers though the home
6. If they like it then sell them the contract, do another contact and double close, or sell them the llc if the contract was not assignable..
7. If they don't then exercise your escape clause.....

Very short version....But, definetly the version that works time and time again...

good luck

Corey-
#6 on Eric's list explained options if your end buyer wants to buy the house you have under contract; They are three different options depending on the situation/contract with your seller.

1.) If you sell the contract to the buyer you are done; Or 2.) if you have a different purchase price with your buyer then you can double close; Or 3.) if the contract is not assignable sell the LLC to end buyer. - Brandon

Corey if you have a property under contract for 50K and a buyer at 60K you have two options to collect the 10K.

You can do an assignment for 10K or you can double close collect to the 10K.

An assignment is selling the contract and there is one closing with all 3 parties. You collect your fee at closing.

A double close is two separate closings. One with the person your buying from and one with the person your selling too. The double close keeps the amount that your making hidden from both parties.

Originally posted by Corey Demuth

Ok but to double close, don't I need to actually HAVE that 50k myself to buy it from the seller?

Not necessarily. You can use Hard Money or "Private" money to finance you for the one special day you need it.

So if you can successfully orchestrate a double closing, dont worry about getting funding. Your credit, income, assets, etc... will not matter because you are only borrowing for one day.

Curt, not that I disagree with the truth of your statement, but I think that the allure of wholesaling for most people is that they don't have to know how or to even be able to buy investment property.

Wholesaling provides an opportunity for someone to make money in real estate with little risk, capital, or credit, and that is exactly what 95% of the population is looking for.

Now a new wholesaler selling property to an experienced investor does remind me of using a real estate broker who's never invested to find investment property. Yes, they probably have no idea what their really talking about, but that doesn't mean that they can't find you a deal. No you don't want to take their word on if its a good deal or not or how much the repairs are, but with some direction they can still connect the dots for you.

Start as a bird dog and then move into wholesale. [SOLICITATION REMOVED]

Ryan,

I agree with you for the most part. In order for someone to really understand how to wholesale, buying a few will give them the experience to get an idea how the process works. It should give them an appreciation of what we do. Everyone always wants to start off as a wholesale investor. It actually takes more skill if you want to do it right.

Richie,

I disagree with you. You do not want to start off as a bird dog. Bird dogs have a bad rep. Rather, maybe work closely with a local professional who would be willing to help you along. Go to your local reia and find out who would be the right fit for you.

I read find buyers 1st and then I read find sellers 1st.
Im not sure what to do so I created a website to generate leads for both sellers and buyers. I guess I am just hoping deals will come my way.

is a double closing something that is more comfortable for both parties?